If Bonds with a Face Value of $20,000 Are Redeemed

Multiple Choice

If bonds with a face value of $20,000 are redeemed before maturity when the amortized cost of the bonds is $18,000, the entry to record the redemption will include a debit to

A) Bonds Payable for $20,000.
B) Bonds Payable for $18,000.
C) Interest Payable for $2,000.
D) Bonds Payable equal to the market price of the bonds on the date of conversion.